BAZA3 Banco da Amazônia

Banco da Amazônia is a federal public financial institution, organized as a mixed-capital company and authorized by the Central Bank to operate as a commercial bank. Its common shares are traded on B3 under the ticker BAZA3, with the Brazilian Federal Government as the controlling shareholder and majority holder of its capital. The institution traces its origins back to 1942, when it was created by Decree-Law No. 4,451 as Banco de Crédito da Borracha, with an initial focus on financing the rubber production chain. In 1950, under Law No. 1,184, it was renamed Banco de Crédito da Amazônia S.A., expanding its scope to other economic activities. Its current name, Banco da Amazônia S.A., was established in 1966 by Law No. 5,122, when the institution clearly assumed the role of financial agent for the Federal Government’s policy for the development of the Legal Amazon.

Over its history, Banco da Amazônia has consolidated itself as the main financial agent of the Federal Government in the North Region and the Legal Amazon, especially in implementing credit policies to foster economic and social development. The bank is responsible for implementing public policies, plans and government programs aimed at developing the Amazon region, with a strong emphasis on sustainable productive activities and on reducing socio-economic, interregional and intraregional inequalities. Its institutional mission, defined as “Develop a Sustainable Amazon with credit and effective solutions,” guides its strategy of expanding credit activities, seeking business on a sustainable basis that generates jobs, income and strengthens the regional and national economy.

Banco da Amazônia’s business model is based on financial intermediation, on granting development and commercial credit, and on providing typical banking services. The institution may operate development credit, commercial and investment credit portfolios, in addition to participating in the foreign exchange market. A central operational pillar is the management of the Fundo Constitucional de Financiamento do Norte (FNO – Constitutional Financing Fund for the North), which became its main funding source after Law No. 7,827/1989. The bank is the exclusive operator of the FNO in the North Region and also uses, on a shared basis, resources from the Fundo de Desenvolvimento da Amazônia (FDA – Amazon Development Fund), the Fundo da Marinha Mercante (FMM – Merchant Marine Fund), BNDES, the Federal Budget (OGU) and its own funds. In addition, it manages demand and time deposits, savings accounts and Agribusiness Credit Bills (Letras de Crédito do Agronegócio), investing the mandatory allocation percentage in rural financing and in the Programa de Microcrédito Produtivo Orientado (PNMPO – Productive Oriented Microcredit Program).

In its product and service offering, Banco da Amazônia structures credit lines geared to specific segments and to sustainability. Its main fronts include sustainable credit, which finances environmental conservation projects and the responsible use of natural resources in areas such as sustainable agriculture, ecotourism, renewable energy and responsible forest management; commercial credit for individuals and legal entities, supporting investments and working capital; and microcredit for micro and small entrepreneurs and local businesses. In 2021, the institution launched the so-called FNO Green Lines, with differentiated terms and maturities for enterprises that adopt practices with lower environmental and climate impact. The bank also supports large-scale projects in renewable energy, basic sanitation, logistics and infrastructure, considered essential for improving living conditions in the region.

Regional operations are a distinctive feature of Banco da Amazônia and relevant for those analyzing BAZA3 shares. The institution covers the entire Brazilian Legal Amazon, which accounts for about 60% of the national territory, including the states of Acre, Amapá, Amazonas, Mato Grosso, Pará, Rondônia, Roraima, Tocantins and part of Maranhão. Service points are distributed across ten states, covering the North, Northeast, Center-West and Southeast regions, with a branch in the city of São Paulo and a representative office in Brasília. Although it does not generate revenue from abroad, the bank has high capillarity in remote areas, including through itinerant FNO initiatives, which aim to reach municipalities with lower banking presence and smaller productive segments such as mini and micro-entrepreneurs, individual micro-entrepreneurs and family-based farmers.

From an economic and social impact standpoint, Banco da Amazônia directs its financing to objectives such as reducing rural flight, mitigating poverty, strengthening the family-based economy, encouraging micro and small enterprises and increasing Gross Production Value (VBP) and regional GDP. The institution highlights the contribution of its operations to job creation, higher state tax collection and reduced inequalities within and between regions. In 2024, for example, R$ 7.7 billion were allocated to the Green Lines, up 15.3% versus 2023, reinforcing the focus on sustainable projects in sectors such as renewable energy, sustainable agriculture and green infrastructure. The bank also reports significant investments in small businesses, low- and middle-income municipalities and border areas, seeking to strengthen local production chains and promote greater economic security.

Banco da Amazônia’s strategy involves extensive institutional coordination. The institution maintains partnerships with federal, state and municipal agencies, universities, foundations, non-governmental organizations linked to sustainable development, research centers, Sebrae, Embrapa, technical assistance institutes, and entities representing business owners and small rural producers. In the international and sustainable finance sphere, a highlight is the signing of a funding agreement for €80 million with the Agence Française de Développement (AFD), accompanied by the AMABIO technical cooperation program, with an additional budget of €2 million in non-reimbursable resources earmarked for bioeconomy and sustainable finance. There is also technical cooperation with the Ministry of the Environment and a memorandum with APEX Brasil to boost exports of products from the Amazon bioeconomy.

Regarding the environmental, social and governance (ESG) agenda, Banco da Amazônia structures long-term targets and programs. The institution intends to reduce financed emissions by 2030 through support for renewable energy projects and low-emission agricultural practices, such as agroforestry systems and crop-livestock-forest integration, as well as fostering restoration of degraded areas and Payment for Environmental Services initiatives. Internally, it aims to train 100% of employees in sustainability topics by 2030 and to strengthen impact monitoring and measurement. On the social front, it mentions investments in small businesses, programs focused on female entrepreneurship, financial inclusion initiatives, support for scientific research in circular economy, bioeconomy and technological innovation, and donations to organizations that serve children, adolescents and the elderly in the Legal Amazon. These elements compose a picture in which the bank positions itself as a financial agent oriented toward the sustainable development of the region, within a regulatory framework and federal public policies.

For investors tracking BAZA3 shares on B3, Banco da Amazônia therefore presents itself as a regional development bank with strong ties to Federal Government policies, a geographical focus concentrated in the Legal Amazon and a credit portfolio emphasizing productive development, sustainability and social inclusion. The combination of its nature as a public financial institution, its management of constitutional funds such as the FNO and its activity in strategic sectors such as sustainable agriculture, infrastructure and bioeconomy defines the issuer’s economic and operational profile in the Brazilian capital market.